AP Moller - Maersk A/S

Building on our core values, and in recognition of the global climate crisis, Maersk is committed to ensuring that all lobbying activities are conducted in accordance with our commitment to responsible business practices and with the planet and its inhabitants in mind. This means that our climate policy outreach is conducted in line with the goals of the Paris Agreement. [...] We review our membership status once a year to ensure that our own policy engagement, as well as the trade associations in which we are members lobby in alignment with the goals of the Paris Agreement of 1.5 degrees Celsius, as well as other key issues. We are committed to actively advocating for these associations to adopt Paris-aligned lobbying positions, ensuring that their approach and outreach reflect our views and values. The review in 2024 did not lead to any changes to our engagement or membership status.

Building on our core values, and in recognition of the global climate crisis, Maersk is committed to ensuring that all lobbying activities are conducted in accordance with our commitment to responsible business practices and with the planet and its inhabitants in mind. This means that our climate policy outreach is conducted in line with the goals of the Paris Agreement. [...] We review our membership status once a year to ensure that our own policy engagement, as well as the trade associations in which we are members lobby in alignment with the goals of the Paris Agreement of 1.5 degrees Celsius, as well as other key issues. We are committed to actively advocating for these associations to adopt Paris-aligned lobbying positions, ensuring that their approach and outreach reflect our views and values. The review in 2024 did not lead to any changes to our engagement or membership status.

Governance of ESG in A.P. Moller - Maersk in 2022²

**BOARD COMMITTEES (ESG RELEVANT)**

**_Defines ESG strategy_** _and oversees implementation_
**ELT COMMITTEES (ESG RELEVANT)**

**Transformation & Innovation**

**Decarbonisation SteerCo**

**Audit Committee**

**ESG STEERCO ACROSS CORPORATE FUNCTIONS**

**Strategy** **Corporate Sustainability** **Finance**

**_Facilitates ESG strategy and oversight,_** _guides and enables category owners_

**CATEGORY-SPECIFIC GOVERNANCE**

**Risk & Compliance**

**Remuneration**

**Investment Committee**

**ESG category** **ELT sponsor** **Owner**

Governance Caroline Sustainability
Pontoppidan

Business ethics Caroline Compliance
Pontoppidan

Sustainable Henriette Hallberg Procurement
procurement Thygesen

Responsible tax Patrick Jany Tax

Citizenship Caroline Sustainability
Pontoppidan

Data ethics Navneet Kapoor Technology

**ESG category** **ELT sponsor** **Owner**

Climate Henriette Hallberg Decarbonisation
change Thygesen

Environment Henriette Hallberg Safety &
ecosystems Thygesen Resilience

**ESG category** **ELT sponsor** **Owner**

Human capital Susana Elvira HR

Diversity, equity Susana Elvira HR
and inclusion

Human rights Caroline Sustainability
Pontoppidan

Employee relations Susana Elvira HR
and rights

Safety and Henriette Hallberg Safety &
security Thygesen Resilience

Sustainable/ Vincent Clerc Sustainability
inclusive trade

###### The three key elements of Commit – Maersk's internal governance framework

Our guiding Core Values, which have been shaped
and strengthened since our foundation in 1904.
In 2022, we revitalised our Core Values to ensure
they were consistently interpreted, easy to apply,
and had a strong connection to our Purpose.

The Code of Conduct sets global standards for how
we engage with colleagues, customers, suppliers,
communities, authorities and other stakeholders.
The Code of Conduct was updated in 2022 to align
with our Purpose and ESG strategy.

The governance framework includes 21 Rules of
**business ethics, governance and authority, which**
are detailed internal instructions for all employees
covering high-risk areas, and subject to internal
controls and an annual internal assurance process.

**How the ESG strategy is governed**
As illustrated in the governance model on this page, responsibility
is ultimately anchored with the company's Board of Directors who
endorse the overall ESG strategy and approve major investments
such as the green methanol-enabled vessels. The Audit Committee

takes an active role to ensure oversight of key ESG risks, and during
2022 has received regular updates on sustainability and ESG
reporting process development. Furthermore, the Remuneration
Committee in 2022 had particular focus on ESG-linked executive
remuneration KPIs and targets: Starting in 2023, executive
compensation will be directly tied to the outcomes on selected
ESG targets (decarbonisation, safety and diversity) through
the Long Term Incentive programme. Further details will be
communicated during 2023.
All of the 14 ESG categories are owned and led by a member

of the Executive Leadership Team (ELT) who drives the initiatives
forward and is responsible towards the full executive team and the
Board of Directors for delivering the intended outcomes. Quarterly
updates on ESG strategy progress across all categories are provided
to the ELT to facilitate oversight and support decision-making on
strategic dilemmas and risks.
Two ELT-level committees have particular responsibility for
ESG categories: The Decarbonisation SteerCo, chaired by Henriette
Thygesen, is a forum for strategic discussion and decision making on
behalf of the ELT on matters related to the decarbonisation strategy.
In 2022, this included approval of the updated 2030 decarbonisation
roadmap as outlined in the Climate Change chapter.
The Risk and Compliance Committee, chaired by Caroline
Pontoppidan, has oversight of key risk and compliance processes and
topics across Maersk, including the Commit governance framework
and enterprise risk management. ESG topics are addressed as part
of these processes, and through annual updates on key topic areas
including human rights, sustainable procurement, labour rights and
sustainability reporting.
The ESG SteerCo is a central committee to oversee ESG
governance, performance management and external reporting.
With Caroline Pontoppidan as ELT member presiding and

senior participants across Strategy, Sustainability, Finance and
Decarbonisation, this SteerCo guides and facilitates review

2 From 2023 ESG governance will change in alignment with changes in Maersk's executive leadership team

--NEW-PAGE--

HSSE, Global Employee Relations, Anti-Corruption, Sustainable
Procurement, and Data Privacy & Data Ethics. Each rule has a
designated owner in the organisation who is responsible for
compliance. Executive oversight of compliance with Commit is
managed through an annual internal assurance process, anchored

with the Risk and Compliance Committee.

**Responsible inorganic growth**
Acquisitions are a key part of Maersk's Global Integrator vision,
especially as we add capacity and expertise in areas like contract
logistics and e-commerce to our global portfolio and local coverage.
In 2022, Maersk acquired four companies with a total of over 14,000
employees. As part of our accounting policies we do not include
ESG data from new entities until the year following closing of the
acquisition (see further details on p. 64), allowing time to ensure

robust reporting processes are in place.
To ensure that all inorganic growth targets are aligned with our
own ESG strategy and commitments, we have during 2022 worked
to strengthen due diligence processes by incorporating ESG risk
assessment more systematically into the M&A process. This includes
robust assessments of historic and current ESG performance and
risks across a broad range of topics, from corruption to human rights
and environmental impacts, among others.

of ESG strategy and governance and enables oversight of
significant regulatory developments and trends across the
ESG agenda.
Many of the ESG categories have furthermore established
cross-functional SteerCos or advisory groups to facilitate progress
oversight, ensure that relevant functional and business areas are
looped into strategic decisions' and support on implementation.
Examples include:

- The Decarbonisation Advisory Group (DAG): 17 members
across functions meet quarterly to coordinate and prepare
topics for decision by the Decarbonisation SteerCo. In
2022, the DAG advised on topics such as an updated Ocean
decarbonisation roadmap, Maersk's position and planning
for the IMO 2023 CII regulation, and an updated commercial
value proposition model.

- The Sustainable Procurement SteerCo has 12 members
across functions. It meets quarterly to review and support
on programme progress. In 2022, this SteerCo reviewed
the category roadmap and implementation plans, and
discussed, among other topics, how to ensure that sustainable
procurement processes meet business growth plans and are
aligned with upcoming regulation.

Maersk used employee insights
and feedback from across the
organisation to revitalise its
guiding Core Values in 2022.

- The Safety & Resilience Management Board is chaired by an ELT
member and oversees progress and challenges across safety and
resilience programme areas.

- The Health, Safety, Security and Environment (HSSE) Leaders
Forum gathers HSSE leads across business units and brands to
ensure coordination and practice sharing. This Forum ensures
that Commit assurance is performed for the Commit rules
related to HSSE.

- The Labour Relations Council supports the implementation of,
and compliance with, the Global Employee Relations Commit
Rule across Maersk businesses. It functions as an escalation body
on issues related to labour rights and employee relations and
recommends solutions for management decision-making.

**ESG in the central corporate governance framework: Commit**
As a company, Maersk ensures internal governance to provide
our employees with direction and guidance on how we work and
achieve our main objectives. This is set out in the Maersk Values,
Code of Conduct and Maersk Rules which are all part of the
Maersk governance framework called Commit. ESG topics related
to compliance and responsible business practices are integrated
into Commit through the Code of Conduct and Commit Rules on

In 2022, joint leadership teams conducted regional road
shows to welcome LF Logistics employees to Maersk.

In 2022, joint leadership teams conducted regional road
shows to welcome LF Logistics employees to Maersk.

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]Our engagement activities serve to support our overall climate change strategy and thus the two are aligned. Senior company executives, responsible for our climate change strategy, discuss and decide engagement activities at the strategic level, including setting objectives. Frequent updates, exchanges and participation by senior executives ensure that engagement activities continue to be in link with overall climate change strategy.

Describe the process(es) your organization has in place to ensure that your external engagement activities are consistent with your climate commitments and/or climate transition plan?[…]Our engagement activities serve to support our overall climate change strategy and thus the two are aligned. Senior company executives, responsible for our climate change strategy, discuss and decide engagement activities at the strategic level, including setting objectives. Frequent updates, exchanges and participation by senior executives ensure that engagement activities continue to be in link with overall climate change strategy.

09/05/2024, 15:45 Policies and Positions | Sustainability and ESG | Maersk

Home Sustainability at Maersk Our approach to ESG

Share We commit to clarity and consistency on our policies and positions. They guide our work to drive a sustainable transition in global trade and ensure that we live up to the highest ethical standards.

Our policies and positions

Sustainability Report 2023

Our word is our bond

Maersk operates in more than 130 countries and has a significant presence in many locations across the globe. This means we also have a role to play in the development of local and international policies and regulations.

We apply this principle in all public policy outreach and in our stakeholder engagements, guided by our core values: Constant Care, Humbleness, Uprightness, Our Employees and Our Name. These values have lived in Maersk since 1904, emanating from the founding family. View Mr. Møller's statement and read more about our core values here.

Building on our core values, and in recognition of the global climate emergency, Maersk is committed to ensuring that all lobbying activities are conducted in accordance with our commitment to responsible business practices and with the planet and its inhabitants in mind. This means that all of our climate policy outreach is conducted in line with the goals of the Paris Agreement.

" sThhoeubldasbicepyroinucribpolendis. that people can trust us. Your word

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Maersk Mc-Kinney Møller

CEO (1965–1993) – A.P. Moller - Maersk

Policies and positions

Definitions

For definitions on terms used in our position papers, download this file:

Definitions: Maersk Position Papers

PDF (335KB)

Environment policies and positions

Decarbonising logistics: our strategic imperative

Decarbonisation of the shipping industry is a strategic imperative embedded across Maersk. We are intensifying our efforts to achieve net zero emissions by 2040 and have set intermediate targets aligned with the Science-Based Targets initiative (SBTi) 1.5°C pathway.

In 2023, Maersk became the first in the shipping industry to have its 2030 and 2040 targets validated by the SBTi. These new targets, which are critical to our decarbonisation efforts, and to aligning with our customers' targets, include specific sub-targets for our scope 1, 2 and 3 emissions (see Sustainability Report 2023 pp. 18-27 for more details).

A strong, global regulatory framework, with instruments to rapidly and effectively reduce greenhouse gas (GHG) emissions, is urgently required to deliver on these ambitions. We are working closely with regulators and other key stakeholders to build strong policies to support this critical transition and secure decarbonization across the entire shipping sector as well as promote the production of green fuels.

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Read more about A.P. Moller-Maersk positions for MEPC80 here.

Maersk positions for IMO MEPC80

PDF (428KB)

Need for strong IMO leadership to decarbonize global shipping

Globally, the 80th session of the IMO's Marine Environmental Protection Committee marked a significant advancement in maritime environmental regulations. The committee adopted a revised strategy including enhanced ambitions to reach net zero GHG emissions from international shipping by 2050.

For Maersk, the two most important and complementary measures in the revised strategy are a mandate to develop a global fuel standard and a maritime GHG emissions pricing mechanism. A global fuel standard of 5-10% green fuels by 2030 will ramp up the use of green fuels in shipping, while the GHG price addresses energy efficiency.

A number of GHG pricing mechanism proposals are under consideration, with different price points and different approaches, e.g. from well-to-wake to a levy to emissions trading or feebate systems. Maersk, along with other members of the World Shipping Council, have put forward a proposal for a Green Balance Mechanism – essentially a subsidy-fee mechanism including an administrative and redistribution element on top, as well as a just and equitable transition element and R&D fee.

Charting the course to a climate neutral continent

The European Union's Fit for 55 legislative package, aimed at reducing net greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels, includes the EU Emissions Trading System and the ground-breaking FuelEU Maritime fuel standard, which takes a 'well to wake' approach to ensure emissions are not merely shifted from sea to shore. Maersk is preparing for these regional measures and hopes they will be a steppingstone for IMO global measures.

In our view, some of the most important elements are:

The Emissions Trading System (ETS), introducing the first carbon price on shipping emissions; The FuelEU Maritime Regulation, introducing the first fuel standard supporting the use of green fuels; The Renewable Energy Directive, setting a legal framework for the development of renewable energy and the production of green e-fuels; The EU Taxonomy, establishing a list of sustainable economic activities to shift investments in a more climate friendly direction; and The Green Deal Industrial Plan, scaling production of green tech and green fuels.

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As these elements come into place, we assess their impact and consider what next steps can propel the energy transition forward.

We call for renewable energy to be built out at scale and speed

Renewable energy lies at the heart of Maersk's energy transition across all aspects of our business, spanning ocean and landside transport, air transportation, warehousing, and terminals. The successful operation of many of our low carbon products hinges on a reliable supply of renewable electricity, leading to a significant increase in demand for such energy sources.

To drive this transition effectively, Maersk therefore believes that the foremost policy priority should be ensuring access to renewable energy in ample quantities at competitive prices. This requires expediting permitting processes, developing electrical grids and connections, but also creating an enabling environment to produce cost-competitive green electricity as a vital feedstock for green hydrogen-based fuels, which decarbonization of the shipping industry depends on. Initiatives such as US's Inflation Reduction Act and EU's Hydrogen Bank are important initiatives to facilitate the transition.

Responsible ship recycling as important as ever in view of decarbonisation efforts by industry

There is a growing need on a global scale for safe and environmentally sound recycling of vessels that have reached their end-of-life cycle. This development is supported and accelerated by international and regional measures to reduce GHG from shipping, for example IMO regulations on EEXI (Energy Efficiency Existing Ships Index) and CII (Carbon Intensity Indicator).

Maersk has developed its own Responsible Ship Recycling Standard (RSRS) setting heightened standards on Health & Safety, Environment, Anti-corruption, Subcontractors and Labour and Human Rights. Maersk has worked closely with different yards across the world and notably in Alang in India on implementing the RSRS when recycling a Maersk vessel.

Furthermore, responsible ship recycling can contribute to the creation of a viable ecosystem and circular economy around "Green Steel" (re-used steel). Steel is the second largest GHG polluting industry accounting for 7 % GHG release of all emissions.

Social policies and positions

Governance policies and positions

Active membership in global trade associations

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Industry associations play an important role in the democratic process – shaping, informing and sharing technical standards and public policy. They also provide a forum, within a clear competition law framework, for members to debate and prepare sector-specific positions.

As a sector leader, we believe that active participation in trade associations is both an obligation and an opportunity to raise the bar when necessary. We always aim to do so with our core values in mind – not least humbleness and uprightness.

Multi-vocal by definition, trade associations are always an expression of compromise between their members. As such, Maersk will not always be 100% aligned with their positions, and retains, like any other member, its ability to choose a different path.

We also believe that trade associations should in general support transparency of debates, data and technical knowledge, as these are pivotal to building trusted relationships among members and also with decision makers.

Maersk's most material trade association memberships, which are active in the public policy and regulatory affairs sphere, include (but are not limited to):

Trade Association

Baltic and International Maritime Council (BIMCO)



European Roundtable for Industry 

Getting to Zero Coalition 

World Shipping Council 

Aligned with the Paris Agreement (1.5 degrees Celsius)

Aligned ✔ Aligned ✔ Aligned ✔ We review our membership status once a year to ensure that our own policy engagement, as well as the trade associations in which we are members lobby in alignment with the goals of the Paris Agreement of 1.5 degrees Celsius, as well as other key issues. This includes assessing how their approach and outreach reflect our views and values. The review in 2023 did not lead to any changes to our engagement or membership status.

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Sustainability Report 2023

Explore our progress on environmental, social and governance dimensions in our latest Sustainability Report.

https://www.maersk.com/sustainability/our-approach/policies-and-positions

IMO and COP progressing in the right direction, but there is more to be done!

The 80th session of the IMO's Marine Environmental Protection Committee in 2023 marked a significant advancement in maritime environmental regulations, with the adoption of a revised strategy, including enhanced ambitions to reach net zero GHG emissions from international shipping by 2050.

The United Nations Climate Change Conference (COP28) also marked a pivotal moment in global climate negotiations. This was the first time a COP agreement was reached that calls on all countries to move away from using fossil fuels, including accelerating efforts towards the phase-down of unabated coal power, phasing out inefficient fossil fuel subsidies, and other measures to drive the transition away from fossil fuels in energy systems in a just, orderly and equitable manner.

Learn more Sustainability Report 2023

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Learn more about sustainability at Maersk

About us

Maersk is an integrated container logistics company operating in 130 countries. Learn more about us and our impact on world trade.

Our ESG priorities

Learn more about how we prioritise our ESG efforts in line with our core commitments, and how we measure our progress in each category.

Our approach to ESG

Get an overview of our ESG strategy, governance framework, stakeholder engagement and policies and positions.

https://www.maersk.com/sustainability/our-approach/policies-and-positions

Low emissions solutions

Let us help you accelerate progress on your decarbonisation goals as you plan a sustainable future for your business and our planet.

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About us

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